Message to Shareholders

Nov 13, 2007 | Aug 14 2007 | May 8 2007

During the third quarter, we continued to invest in both Ontario and Quebec mining operations to position ourselves for a strong 2008.

Overall operations produced 16,400 ounces of gold generating an operating profit of $1.2 million and cash flow of $1.7 million. In Ontario, we commenced milling of the Mishi stockpile while activities focused on developing the high grade 811 zone at Eagle River. Quebec operations continue to be challenging with less than expected grades and production. A detailed cost control and optimization program is steadily reducing costs and we expect to be in a breakeven position by December, 2007.

We continue to forecast 70,000 ounces of production in 2007 with half attributable to Ontario and half from Quebec. We are accelerating exploration efforts at both operations and expect this to continue through 2008.

The remarkable rising "looney" has negated the positive movements we have seen in the US$ gold market to date, yet we remain confident gold will outrun the Cdn$ and surprise many with its strength.

On behalf of the Board of Directors,

Rowland Uloth
President

November 13, 2007